The Future of Industry

By L. Hunter Lovins, Emily A. Evans, Bonnie Nixon and Catherine Greener
This paper was adapted an expanded for a global audience from a paper written for the UNIDO International Conference on Green Industry in Asia, September 2009.
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Table of Contents
Chapter 1. The World Needs Sustainable Production……….. 6

Why Business-as-Usual is Changing: The Drivers of Change……. 7
Rethinking Industry to Achieve Sustainability: Solutions and Opportunities……. 9
How to Change Industry: Radically Sustainable Manufacturing and Tools for Change……. 11
Rethinking Development: Lifting People Out of Poverty……. 12

Chapter 2. Business As Usual Is Changing……….. 14

The Drivers of Change: Challenges Facing Industry……. 14
Economic Collapse—How Environmental Unsustainability Drove Financial Collapse… 15
Loss of Ecosystems and Services Provided by Ecosystems… 17
Climate Change… 22
Growing Food and Water Scarcity… 33
Oil Supply Constraints… 41
Shifting Demographics… 44
Globalization and Localization… 48
Growth and Impact… 50
Sustainability Imperative… 52
Sustainability: the Foundation of Prosperity and Development……. 56

Chapter 3. Rethinking Industry to Achieve Sustainability……….. 59

Natural Capitalism……. 59
Natural Capitalism Principle One: Buy Time By Using Resources More Productively… 61
Eco-Efficiency……….. 62
Whole Systems Design for Efficiency……….. 67
Efficiency Throughout the Supply Chain……….. 69
Efficiency for Smaller Companies……….. 71
Efficiency in Buildings……….. 74
Manufacturing efficiency……….. 77
Natural Capitalism Principle Two: Redesign Everything… 79
Biomimicry……….. 81
Cleaner Production……….. 91
Cradle to Cradle……….. 93
Natural Capitalism Principle Three: Restore Human and Natural Capital by Managing All Institutions for Sustainability… 111
Green New Deal……….. 113
Zero Waste Eco Towns……….. 114
Achieving Sustainability Through the Principles of Natural Capitalism……. 118

Chapter 4. Integrating the Three Principles……….. 121

Truly Transforming Industry……. 121
Radically Sustainable Manufacturing… 121
Understanding the system……….. 122
Implementing Radically Sustainable Manufacturing: Industrial Ecology… 123
Kalundborg, 30 years of Industrial Ecology… 125
Tools for Change……. 128
Tools for Private Industries… 129
Life Cycle Analysis (LCA)……….. 129
Design for Environment……….. 133
Biomimicry……….. 135
Scenario Planning……….. 137
Sustainable Operating Systems……….. 138
Wheel of Change……….. 139
The Sustainability Advantage……….. 140
Solutions at the Speed of Business……….. 142
Managing a Company with the Sustainability Helix……….. 143
The Helix as a Management Tool……….. 147
Sustainability Helix Activity Threads……….. 148
Existing efforts to introduce sustainability, transparency and accountability into the supply chain……….. 154
Global Reporting Initiative……….. 161
Value Chain Ecosystems… 161
Government’s Role… 162
Innovative Government Mechanisms to Implement Sustainability……….. 163
Overcoming Barriers of Change……….. 164
Eliminate Perverse Subsidies……….. 167
Tax Shifting……….. 170
Creative Ways to Provide Capital……….. 170
Tools for Community Action… 172
LASER—Local Action for Sustainable Economic Renewal……….. 172
Transforming the Production Model……. 173

Chapter 5. Rethinking Development……….. 175

Redefining Aid……. 175
Lessons in Development……. 189
The Best Choice for Developing Countries: Investing in Energy Efficiency and Renewable Energy… 193
Working with Developed Countries……. 203
Eco-tourism… 203
Organic Food Markets… 204
Fair Trade Markets… 206
Changing Consumer Behavior… 210
Achieving Genuine Sustainable Development… 211

Chapter 6. The Role of The Economy……….. 214

Redesigning the Gross Domestic Product……. 214

Appendix: The Business Case……….. 219
Acknowledgements……….. 221
Author Biographies……….. 222
References……….. 226
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